Today marks the release of the EU Supplement Report to L2 Think Tank’s fourth annual Digital IQ Index: Beauty. The report is a deep dive into the digital competence, regional trends and growth opportunities for the EU-5: France, Germany, Italy, Spain and the United Kingdom. Case studies from the 56 brands in L2’s recent beauty study are also highlighted in the EU Supplement Report.
Our research indicates that there are still tremendous opportunities for the European beauty industry in areas of e-commerce, mobile, and new media. Although roughly one in three consumers in France, Germany, and U.K. indicate that they shop for beauty products online, e-commerce penetration among beauty brands is still less than 50% in each of the EU-5 markets.
On the m-commerce front, the percentage of brands with mobile sites drops to less than one in three. Similarly, investment in digital marketing is still low in most countries — ad spend per Internet user in 2012 ranges from $118 in Germany to less than $80 in France, Italy and Spain, compared with U.S. and U.K. estimates of $165 and $185 respectively. However, despite overall slow digital adoption, we found that several beauty brands’ country specific social media communities match or even exceed the growth of their U.S. or Global pages. The digital opportunity is present in Europe, but whether beauty brands fully capitalize on it still remains to be seen.
For more information on the EU Supplement to the Digital IQ Index: Beauty, download an excerpt of the report here and watch the video below: